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Credit Card Processor - Key Decision Driving Factors For Finding the Best Provider
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Posted On :
Jul-08-2010
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Article Word Count :
648
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A number of questions come up when you start looking for a credit card processing service such as Will the service really help my business?, What will the rates be like?, Will they be reliable?, Are they responsible?, etc. The internet is a first-class starting place for searching out credit card processors. On what scores do you decide which processing service is the solution for your business needs?
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A number of questions come up when you start looking for a credit card processing service such as Will the service really help my business?, What will the rates be like?, Will they be reliable?, Are they responsible?, etc. The internet is a first-class starting place for searching out credit card processors. On what scores do you decide which processing service is the solution for your business needs?
In this article, we discuss some of the decisive factors in selecting a credit card processing service for your business:
Credit card processing fees
The costs of hiring a credit card processing service is logically a critical consideration. You want a service that is within your means and well worth its price. Different credit card processors charge varying fees but the most common are described below:
- Startup fee: Many credit card processing companies don't levy this charge. Others collect this fee as a "one time" charge. It ranges around $250.
- Gateway fee: If you have an online store, you will need a payment gateway to accept credit card payments. Payment gateway providers charge a monthly fee that can be any amount from $10 to $50.
- Statement fee: Majority of credit card processing firms collect a statement fee that ranges from $9-$10 per month.
- Monthly minimum fee: Credit card processors charge a monthly minimum from $20-$30 to ensure at least some income from each merchant.
- Transaction fee: This fee is charged by all credit card processing companies. A set amount that varies from 24-35 cents is collected for each transaction processed. Apart from this fee, the processor also collects a cut (discount rate) that averages to 2.14%-2.40% of the credit card amount processed.
- Address verification fee: Address verification is an additional safety measure to protect businesses from credit card fraud. Many credit card processing providers charge a fee for each address confirmed. This can cost your business 5-10 cents per address.
Desirable features in a credit card processing service
Once you know the costs, you need to verify if the service can serve all your business requirements. Match your necessities with the solutions provided by the service.
Type of credit cards accepted
Record the typical types of cards used by your customers or the card types you would like to accept. Then, check if the credit card processing service accepts them. The most common card types are Visa, MasterCard, Discover, and American Express.
Type of services
A credit or debit card processing service should include all the services needed to process payments in physical stores or e-commerce outlets. Some services that should be included in the offer are:
- merchant account
- virtual terminal
- e-check services
- point-of-sale (POS) credit card machines
- shopping cart
- recurring billing
- short payment clearing period
Credit card processing security precautions
Credit card transactions are prone to scams and thefts. Credit card processing services should provide necessary security features such as:
- fraud protection
- CVV2 checking
- real time processing
- address verification
- SSL and encryption
Customer support quality
What makes credit card processing services dependable? A very low error rate and easily accessible customer support service. Customers should be able to reach customer support immediately in case of emergencies or critical situations. Basic customer support includes:
- customer support numbers, email, fax, and work timings (24x7 works best)
- specified response times
- toll-free telephone number
- live online chat, if needed
Businesses should weigh expenses and services before selecting a service provider. The contract should not only fit your business financially but also satisfy all your expectations.
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Article Source :
http://www.articleseen.com/Article_Credit Card Processor - Key Decision Driving Factors For Finding the Best Provider_24828.aspx
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Author Resource :
Daljeet Sidhu is at TradeSeam B2B Marketplace. Credit Card Processing for Small Business advice. Small Business Credit Card Processing quotes.
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Keywords :
credit card processing, merchant account, merchant account service, credit merchant account, merchant account credit card, c,
Category :
Finance
:
Credit
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